Allgeier and Otto Bock Holding sign Letter of Intent to merge their SAP and Microsoft businesses – milestone on the way to a global software services provider

11/08/2018

Publication of inside information pursuant to Art. 17 MAR

Munich, 08 November 2018 – Allgeier SE (ISIN DE000A2GS633, WKN A2GS63) today reached an agreement with Otto Bock Holding GmbH & Co KG, Duderstadt, in the sense of a letter of intent with the aim of merging Allgeier Enterprise Services AG and Sycor GmbH. For Allgeier, this strategic step represents an important milestone on the Group’s way to transforming itself into a global software services provider. The consulting and services portfolios of the two units complement each other perfectly. Together, Allgeier and Sycor will be able to successfully support their medium-sized and enterprise customers with innovative IT solutions for the digital transformation of their business processes.

With the planned merger of the two IT consulting companies, one of the leading full-service providers for SAP and Microsoft Services will be created under the entrepreneurial leadership of Allgeier as majority shareholder. With this agreement, both parties have set the stage for further steps in the process, in particular the mutual due diligence. Allgeier and Otto Bock Holding aim to conclude the corresponding contracts by the end of the year. The closing is expected to take place in the first quarter of 2019.

With the strategic merger, the Allgeier Enterprise Services division will almost double its current revenues and significantly expand its customer base, which is mainly located in the upper midmarket and enterprise environment. Allgeier Enterprise Services achieved a turnover of EUR 105 million in the past financial year 2017 with around 750 employees. In 2017, Sycor achieved a turnover of EUR 85 million with 690 employees. The joint unit has more than 1,500 employees and expects sales of EUR 220 million for the current 2018 financial year.

Sycor and Allgeier Enterprise Services will continue to operate in the market in the same units that are familiar to customers and employees, and leverage economies of scale and synergies together. Together they operate more than 50 locations in the DACH region, France, Denmark, China, Singapore, Canada and the USA with more than 1,500 highly qualified SAP and Microsoft experts. In addition to the significantly expanded know-how, the joint customers benefit from the market and partner access of an internationally active service provider and the highest scalability in the provision of services through the use of the joint resource pool.